Kuwait Finance House (Malaysia) Berhad (“KFH Malaysia”), the Malaysian arm of the second largest Islamic bank in the world and the first foreign Islamic bank in Malaysia, is proud to announce that it had entered into a strategic collaboration with Shoraka Global Resources Sdn Bhd (“Shoraka”) since February 2019. Shoraka Global Resources (“Shoraka”) is a subsidiary of Shoraka Advisers Sdn Bhd which offers a competitive and innovative commodity trading platform for the Islamic financial institutions in Malaysia and globally that require Tawarruq structure as its underlying principles.  Meanwhile, the establishment of Shoraka Group of Companies since 2006 is to offer a total financial solution which includes advisories, investments, fund management as well as Tawarruq trading platform.

The bilateral collaboration between KFH Malaysia and Shoraka focuses on the areas which leverage on each party’s distinct strengths and expertise: -

• the appointment of KFH Malaysia as Shariah advisor for Shoraka Al Amin, the Tawarruq trading platform of Shoraka is to ensure the trading platform meets with the standards of Bank Negara Malaysia Policy Document dated 28 December 2018 as well as the structure, standards and the processes are in full compliance with the Shariah parameters. Apart from complying with the requirements in Malaysia, the collaboration in this respect enables Shoraka to gain access to the globally recognised fatwa that Kuwait Finance House is renowned for, given its Group a global presence.
• the appointment of Shoraka as one of the commodity brokers for KFH Malaysia, thus to further diversify its network of Tawarruq commodity brokers as well as for KFH Malaysia to become a Shoraka trading platform participant, a web-based Shariah-compliant commodity trading platform designed to facilitate Islamic financial institutions globally to offer product-based on Tawarruq principles. Apart from cost optimisation to conduct commodity transactions for KFH Malaysia’s Tawarruq arrangements, KFH Malaysia will be able to leverage on the global network of experts and resources that Shoraka has established not only in Malaysia but also other countries in the Middle East and Asia such as the UAE, Indonesia and Singapore. 
• the bilateral collaboration allows Shoraka to introduce its wide range of clients to KFH Malaysia that requires banking, treasury and trade facilities

KFH Malaysia intends to foster more of such “win-win” strategic collaborations and welcomes more of such opportunities moving forward.